{JL: The economic logic of European integration is now directly confronting nationalistic sentiments in the hearts and souls of Europeans. It’s becoming clear that nationalism resonates more deeply.}

Journalistic hyperbole.

The Germans were worse off, they are now better off – so many have qualms about going back to worse off. They think (wrongly) that mutualization of debt means that hardworking German must pay for the profligacy of the rest of Europe. The Finns seem to share that same queasiness.

Yes, this is the North-South Dilemma that has always plagued Europe. (Some Italians will say, ever since the barbaric tribes of the north – the huns and vikings – invaded the south in search of its warm sunshine.)

In a more modern context, Europe finds itself at a crossroads. Is the “One Europe” as strong or stronger a pull than the “Many European countries”? It is a question that they undertake to answer reluctantly. Times are bad, sentiments are worse. Time continues, sentiments change …

Most business-people, who are heavily involved in inter-EU commerce, know all too well that the unity of Europe has made for a giant, functional common-market of over 400 million individuals. That is, much larger than the US at 310 million consumers.

Why spoil a “good thing”? As in war, in economics there is safety in numbers. To wit, the larger the market, the higher the demand; the higher the demand, the more work is produced. Which is not an axiom, but a good enough rule of thumbs to think by.

There is much, much doubt that feckless politicians and civil-servant functionaries will bring it to a dead stop with their eternal bickering. But politicians, who make a career of it, must please and have instincts that tend to crowd-sentiments.

The functionaries, dependent upon cronyism, do the bidding of politicians. They have no mind of their own and must bend to the prevailing winds. After all, they are not elected but nominated into their very handsomely paid jobs.

And therein lies the riddle. As we say in America, “Show me da money”. That dictum prevails just as steadfastly in Europe – but Europeans are not so crass as to admit it.

And THAT is the East-West Dilemma. A common language, but different wave-lengths of communication.

Dilemmas, always the same problem … and so the gridlock continues.

]]>By: Greenspan2http://blogs.reuters.com/john-lloyd/2012/07/23/europes-impossible-dream/#comment-1253
Thu, 26 Jul 2012 22:03:45 +0000http://blogs.reuters.com/john-lloyd/?p=426#comment-1253@Samrch
Does habeas corpus fit it there anywhere? But then within a police state what does it matter anyway?
]]>By: Greenspan2http://blogs.reuters.com/john-lloyd/2012/07/23/europes-impossible-dream/#comment-1252
Thu, 26 Jul 2012 21:58:23 +0000http://blogs.reuters.com/john-lloyd/?p=426#comment-1252@OneOfTheSheep
Maybe you should be posting under “OneOfTheLemmings”.
]]>By: Greenspan2http://blogs.reuters.com/john-lloyd/2012/07/23/europes-impossible-dream/#comment-1251
Thu, 26 Jul 2012 21:49:39 +0000http://blogs.reuters.com/john-lloyd/?p=426#comment-1251@raduionescu
I guess I should have included the British along with American financial institutions.
]]>By: OneOfTheSheephttp://blogs.reuters.com/john-lloyd/2012/07/23/europes-impossible-dream/#comment-1250
Thu, 26 Jul 2012 16:12:37 +0000http://blogs.reuters.com/john-lloyd/?p=426#comment-1250@Deamer,

“The Euro…member nations are the most powerful group in the world.”

You’re living in some kind of reality distortion shield. Maybe you should be posting under “Dreamer”?

]]>By: Deamerhttp://blogs.reuters.com/john-lloyd/2012/07/23/europes-impossible-dream/#comment-1249
Thu, 26 Jul 2012 13:25:33 +0000http://blogs.reuters.com/john-lloyd/?p=426#comment-1249Invoking the Star Spangled banner in the name of economics in regards to the European dream may not be out of place in Europe. The former communist countries of eastern Europe are now not adverse to American capital in Europe but there is now the Euro, a local currency to conduct transactions between nations.

The Euro traverses both the Maastricht Line and the channel but is yet to cross the Atlantic. It is a world currency and the member nations are the most powerful group in the world. Putting aside grievances and nationalism should be part of the future.

]]>By: Samrchhttp://blogs.reuters.com/john-lloyd/2012/07/23/europes-impossible-dream/#comment-1248
Thu, 26 Jul 2012 08:43:12 +0000http://blogs.reuters.com/john-lloyd/?p=426#comment-1248The first step has to be Europe wide election of high EU officials. Second is a single European army. Third is a European commercial code of law with courts and most important is bankruptcy law including bankruptcy of local governments. Without a central army and police the courts have no power over local popular political figures or local corruption.

The banks and other things like that should come later. Rule of law in commerce and elections must come first.

The biggest problem will be promoting growth of export industries in the weak nations. The strong ones will call
that export subsidies (even if it just a favorable tax code) or favoritism (if awards of defense contracts are used). The weak nations need that or need leave the EU. They are small and trade is a major portion of their GDP.

]]>By: raduionescuhttp://blogs.reuters.com/john-lloyd/2012/07/23/europes-impossible-dream/#comment-1247
Thu, 26 Jul 2012 07:59:53 +0000http://blogs.reuters.com/john-lloyd/?p=426#comment-1247I like Reuters. I don’t understand why this Euro bashing. The British are Euro-sceptic anyway so why pile-drive the idea that the Continent is doomed to fail in its collaboration. It would be nice if John would tell us why his boss is telling him to write this.
]]>By: Neill2http://blogs.reuters.com/john-lloyd/2012/07/23/europes-impossible-dream/#comment-1245
Wed, 25 Jul 2012 23:18:02 +0000http://blogs.reuters.com/john-lloyd/?p=426#comment-1245One point. “The Star Spangled Banner.”

Doesn’t this come from the War of 1812 rather than the Revolutionary War.

Perhaps something to do with the attack on, and burning of Washington.

]]>By: ALLSOLUTIONShttp://blogs.reuters.com/john-lloyd/2012/07/23/europes-impossible-dream/#comment-1242
Wed, 25 Jul 2012 14:30:18 +0000http://blogs.reuters.com/john-lloyd/?p=426#comment-1242The EU has brought as much bad as good. It means bigger government which is ALWAYS bad.

The same benefits could be achieved by much better means. But the stupid will continue to be stupid, act stupid and believe themselves smart.